A machine cost 18871.00 today. at the end of each year I own the machine & it gives me returns of 4,948.00 after paying repairs and maintenance. After 6 years, I expect to sell it for scrap for $1,000. I scrap it at the same time I get the last $4948.00 return.
What is the present value of the return at 3%. What is the present cost of the machine if the interest rate is 3%?